Supply Planning with SAP IBP for sales and operations

When setting up a system that facilitates supply planning in the organization, the starting point is the development of the planning model that describes the structure of a plan in terms of data and calculations. It defines how data is stored, calculated, and aggregated in the system. From a technical perspective, a planning model is a Planning Operators in SAP Integrated Business Planning for Supply Chain.

To perform supply planning, a planning area has to be enabled for supply planning.

You can also run the planning algorithms in Microsoft Excel in batch mode.

Online Batch Processing

Any planning operators that support batch mode can be accessed from the Application Jobs menu in Microsoft Excel.

Choose S&OP Operator → Run.

If any planning units (sub-networks) have been assigned to location or products in your planning area, specify which ones should be processed. Otherwise, you cannot execute planning.

You can also limit the versions or time periods that are planned.

Once the supply planning run is triggered, it may take a few minutes to complete, depending on how frequently the batch processes are scheduled. To review its status, choose S&OP Operator → Status. Job Log Review You can review the job log by clicking on the corresponding hyperlink in the Status field, as shown in the figure, Job Log Review.

Any planning operators that support batch mode can be scheduled from the Application Jobs menu in Microsoft Excel. Choose S&OP Operator → Schedule. Job Scheduling Jobs can be scheduled to run weekly (any or all days), monthly, or yearly. Fill out the entries on the Definition tab. These are the same entries that you needed to set for online processing. To schedule the job, select your desired frequency and choose Add. The job appears in the Status list.

Demonstration Video for How to Prepare you Supply Plan. This demonstration video will guide you through the process to create the unconstrained plan with the help of the Sales and Operations Heuristic to propagate the requirements across your supply chain network.

Think of a time in your professional experience when you had to schedule a recurring task or process. How did you determine the frequency and parameters for the scheduling, and what were the key considerations in making those decisions?

 In my previous role as a supply chain manager, I had to schedule regular demand planning processes to ensure accurate inventory levels. I determined the frequency based on the seasonality of product demand, with more frequent planning during peak seasons and less frequent planning during slower periods. I also considered factors such as lead times, production capacities, and supplier availability when setting parameters for the scheduling. It was essential to align the frequency and parameters with the dynamic nature of our supply chain and the changing market conditions to ensure optimal inventory levels and customer service.

In this lesson, we learned the key concepts of supply planning configuration in SAP Integrated Business Planning. We discussed the importance of developing a planning model, enabling supply planning with planning operators, running planning algorithms in batch mode, and scheduling batch processing. We also covered how to set up and run supply planning operations using Microsoft Excel and the various options for scheduling batch processing to improve supply planning efficiency.

Following the execution of the S&OP heuristic run in SAP Integrated Business Planning (IBP), potential resource capacity issues or bottleneck situations can be readily identified using the Analytics & Dashboard app.

This sophisticated application provides visualization tools and detailed analytics that aid in the prompt identification of capacity utilization. For instance, in the example image presented below, it clearly highlights areas where capacity utilization has been identified. This feature of SAP IBP is particularly helpful in enhancing operational efficiencies, enabling proactive crisis management, and supporting effective decision-making.

It serves as an integral component of supply chain management, facilitating the orchestration of value networks and optimization of inventory. Beyond capacity issues, the app also helps monitor other key operational indicators, contributing fundamentally to the overall efficiency and resilience of the supply chain.

To evaluate the potential impact of an S&OP heuristic run, you can utilize the simulation capabilities of SAP's Integrated Business Planning (IBP) tool within the Excel User Interface. This facilitates hypothetical scenario creation, allowing you to observe and assess the possible effects and ramifications on your operations before implementing any changes in the real system.

Once you've simulated the heuristic run, you have the option to adjust various parameters based on the outcomes of the simulation. This includes altering demand or supply parameters, adjusting the planning horizon, or even changing specific resource allocations.

With these detected insights from the simulation, you can make well-informed decisions and plan strategic responses that contribute to optimal supply chain management. Ultimately, it allows you the chance to test and anticipate any future challenges that could potentially affect your business operations. All these though a seamless and familiar experience of Excel's interface! This entire process underscores the power of SAP's IBP tool in effective decision-making and resource planning.

Within the robust framework of SAP IBP, it's not just possible, but also highly efficient to manage what-if scenarios. This invaluable tool allows you to delve into diverse business scenarios, scrutinizing them at the required level of detail. Whether you're looking to assess potential impacts on supply chain management, or analyze the interplay of various financial factors, the what-if scenario tool facilitates multifaceted business exploration.

This isn't just about solitary decision-making though. SAP IBP allows you to share these scenarios with colleagues for review - fostering a culture of collaborative decision-making. Maybe you're unsure about particular assumptions or simply require a second opinion, SAP makes the process seamless.

These what-if scenarios aren't restrained to the present moment either. You can conveniently save them for later review, preserving your observations, ideas or hypotheses for future contemplation or comparison.

Managing these scenarios isn't just about creating and reviewing them. SAP IBP provides you with multiple options – you can promote a scenario if you find it highly viable, reset if you think it requires reconsideration, or completely delete it from the active version. Each option has its own implications and uses, allowing for rigorous scenario management.

Using SAP IBP's what-if scenario management feature, you're well-equipped to navigate complex business decisions, ensuring a strategic, data-driven approach to your operations.